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How a cashflow model can turn retirement anxiety into excitement

Retiring should be a milestone you look forward to. It’s a chance to spend your time how you want and do the things you’ve been putting off because work has been in the way. Yet, sadly, research shows UK adults associate spending their retirement savings with negative words, and it could prevent them from enjoying the next chapter of their life.

According to an August 2025 article from Money Marketing, UK adults associate anxiety (26%), fear (18%), and guilt (15%) with spending their pension and other assets they’ve built up for retirement.

Positive emotions, such as excitement (15%), security (17%), and relief (10%), were less commonly associated with depleting assets in retirement.

Anxiety could hold back your retirement plans, even if you have enough to tick off items on your bucket list and live comfortably.

Working with your financial planner to create a cashflow model could help you turn anxiety into excitement.

A cashflow model can help you visualise your wealth

For most retirees, their pension provides their main source of income once they give up work. You’re also likely to benefit from the State Pension and have other assets you might want to draw on, such as savings, investments, or property.

Bringing together the value of all these assets and then calculating what that means for your income and financial security throughout your retirement can seem like a daunting task. This is where a cashflow model can be valuable.

A cashflow model is a powerful tool that lets you see how your wealth might change over your lifetime depending on the decisions you make and factors outside of your control.

You start by adding information about your finances now, such as the value of each asset and your expenditure.

With this foundation, the cashflow model can project how your wealth might change. So, you could see how the value of your pension will change during your working life if it delivers average annual returns of 5%. Or how your outgoings might rise to account for an annual inflation rate of 3%.

It can be particularly useful when you’re planning for retirement, as it can demonstrate if you have “enough” based on your plans, like when you want to retire and your expected income.

It’s important to note that the outcomes of a cashflow model cannot be guaranteed, but it can provide useful information so you’re able to make informed decisions. To ensure your cashflow model continues to reflect your circumstances and long-term goals, it’s also essential that you update it regularly with your financial planner.

Calculating a sustainable income could ease retirement anxiety

It’s understandable why people feel anxiety and fear about spending their retirement savings. After all, if you spend too much too soon, you could find yourself in a financially vulnerable position.

The cashflow model can project how your wealth might change. For instance, you could see:

If you can maintain your current lifestyle with your pension savings
Whether you’re in a position to retire before you reach State Pension Age
Whether you’d potentially run out of money if you increased your annual pension withdrawal by £10,000.

Not only can a cashflow model help you understand the potential effect of your decisions, but it can also be useful when assessing how outside factors might affect your finances.

For example, you might change the assumptions the cashflow model uses to see how:

You would cope if you faced an unexpected bill in retirement
A period of high inflation might deplete your assets at a faster rate
A market downturn would affect your investments and long-term finances.

A cashflow model can help you identify potential gaps in your retirement finances and take steps to bridge them. It could help you feel more positive about taking a step back from work and spending your pension.

Calculating the effect of gifting assets and the value of your estate could ease guilt

Interestingly, the Money Marketing article noted that 15% of UK adults feel guilty about spending their retirement savings.

If you find it difficult to spend money on yourself, a financial plan could help you identify what your priorities are and give you the confidence to pursue them.

For some people, supporting loved ones will be a priority and help ease any feelings of guilt. Again, a cashflow model can be useful.

If you want to gift assets to your loved ones during your lifetime, you can input this into your cashflow model to see how it might affect your long-term financial security. For example, if you want to gift a house deposit to your grandchild, you can use a cashflow model to assess the effect of gifting a lump sum now.

You might also be thinking about what legacy you’ll leave behind for loved ones, and how it could provide financial support when you’re gone. A cashflow model could help you calculate the value of your estate in the future, so you’re able to create an effective estate plan.

Contact us to talk about your cashflow plan

If you’d like to review or create a cashflow plan, please contact us.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate cashflow modelling or estate planning.

Why stock market volatility can trigger financial bias

When markets experience volatility, even the most level-headed investor can let their emotions or other influences affect their decisions. Read on to find out why volatility can trigger financial biases and how these might affect you.

For the average investor, it’s important to take a long-term approach. While returns cannot be guaranteed, investing over a longer time frame gives markets more time to smooth out their natural peaks and troughs.

Headlines about market crashes or sudden rallies can set you on edge even if you’re usually calm.

Volatility affects investors because uncertainty triggers an emotional response. When you’re thinking logically, you might note that markets have historically recovered from downturns. However, it’s easy for worries to creep in. You might ask yourself: “What if the market doesn’t recover this time?”

As investments are typically tied to personal goals, these initial worries can spiral, allowing emotions to drive your decisions.

4 types of bias that could affect your investment decisions during volatility

1. Herd mentality

When there’s uncertainty in the market, it’s natural to look at what other people are doing. It can often seem like everyone else is taking the same approach. This can lead to a bias known as “herd mentality”, where you’re tempted to follow the crowd.

It might feel like there’s safety in numbers, but it’s important to avoid making decisions that aren’t right for you just because others are doing the same.

2. Loss aversion

No one wants to see the value of their investments fall, and psychological research suggests that investors fear losses more than they enjoy gains. So, to avoid or reduce losses, investors might sell because they’re worried markets will fall further.

However, this may lead to investors turning paper losses into actual ones. In contrast, sticking to your long-term plan and being patient could mean you benefit from a market recovery.

3. Recency bias

The theory behind recency bias argues that investors place too much emphasis on recent events. So, you might decide that a dip in the market is actually part of a long-term trend, even if the data suggests otherwise.

Taking a step back to look at the bigger picture could help you keep recency bias in check.

4. Confirmation bias

Confirmation bias refers to the tendency of investors to seek out information that supports their existing views.

If you’re worried about markets falling, confirmation bias can lead you to dismiss positive data in favour of negative information. This bias can intensify your fears and lead you to make decisions based on only a small portion of the available data.

Practical ways to reduce the effect biases have on your investment decisions

Emotions and bias interfering with your logical decision-making is normal, but that doesn’t mean it’s harmless. Successful investors manage short-term market movements so they can stick to their long-term plan and adjust when it suits them.

Here are some strategies you could try next time you’re tempted to respond to market volatility.

1. Review your financial plan

Before you make any changes to your investments or financial plan, take some time to revisit it. Your plan should centre on your goals and circumstances, so revisiting it could remind you why you chose your strategy and why sticking with it could be beneficial.

2. Reduce your exposure to the news

It can be hard to escape headlines and constant updates, but limiting your exposure might be useful. You may reduce how frequently you check the news, log on to social media, or even monitor the performance of your portfolio.

Be mindful of the source of the information as well – is the source likely to present changes to the market negatively or exaggerate the effects?

3. Look at the historical data

Investment returns cannot be guaranteed, but looking at past performance might be a useful exercise if you’re tempted to make knee-jerk decisions. Historically, markets have recovered and grown over the long term, even after sharp drops.

4. Talk to your financial planner

Finally, your financial planner can offer valuable advice as they understand your circumstances and goals. Talking through the options could highlight where bias might be influencing your decisions and offer a different perspective that allows you to remain focused on your long-term goals.

Contact us to talk about your investments

If you’d like to talk about your existing investment portfolio or would like to understand how investing could fit into your overall financial plan, please get in touch.

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Phasing into retirement: The flexible options you might consider

Traditionally, you’d go from full-time employment to retirement on a set date. Now, more workers are embracing retirement flexibility and choosing to phase gradually into the next stage of their lives. Indeed, a survey published in September 2024 by WTW found that 49% of UK workers aged over 50 are already phasing into retirement or want to do so in the future.

Alongside calculating the income your pension could provide and planning a retirement bucket list, you might want to dedicate some time to thinking about how you want to retire.

Over the next few months, we’ll explore key considerations for those interested in phased retirement, including the financial implications.

Read on to find out why more people are phasing into retirement and how you might do it.

Longer life expectancy is one of the reasons more people are phasing into retirement

There are many reasons why someone might choose to phase into retirement, and one factor that’s playing an important role in the trend is longer life expectancy.

According to data published by the Office for National Statistics in February 2025, the average 55-year-old man has a life expectancy of 84. For a 55-year-old woman, it’s 87.

So, if you were to retire in your mid-50s, on average, you’d spend around three decades in retirement. For some people, giving up work completely with decades ahead of them can feel daunting, and a phased approach could better suit their goals.

Among the other benefits of phasing into retirement are:

Striking the right work-life balance
Enjoying the social life or purpose that work may provide
Giving you time to adjust to a retirement lifestyle and budget
Providing an income to supplement your pension or other assets.

4 ways you could phase into retirement

If phasing into retirement sounds like it could suit you, there’s more than one option to explore. Here are four ways you could phase into retirement.

1. Reduce your working hours

If you’re happy in your current role but want to benefit from increased flexibility, reducing your hours could help you achieve the work-life balance you’re looking for.

Whether you shorten the working day or work a three-day week, you could increase your free time to spend on activities you’re interested in.

2. Move to a less demanding role

As you near retirement, you might want to adjust your priorities and take on a less demanding role to focus on the aspects of the job you enjoy. This option could help reduce stress while remaining connected to a wider team.

When you’re weighing up your options, be sure to set out what’s right for you. Do you want to move into a position that requires less physical labour, or take a step back from managing people?

3. Take on freelance or consulting work

If you want the freedom to set your own schedule, freelance or consulting work could be an option worth exploring. As you’ll be in control, you can create a work-life balance that’s right for you or focus on projects you’re passionate about.

If you’ve thought about starting your own business in the past, a phased retirement could provide an opportunity to test your entrepreneurial skills. You might turn a hobby into an income stream or continue to provide support for businesses you work with in your existing role.

4. Explore volunteering

If you’re in a financial position to stop working but aren’t ready to give up the structure and social interaction it provides, you could benefit from volunteering.

The great news is that there are thousands of volunteering opportunities across the country, helping you to find a role that suits your skills and interests. Whether you choose to lend a hand at a local food bank or mentor young professionals, you could have a meaningful impact on other people and your community.

Contact us to talk about your retirement plans

A phased retirement could offer you a chance to strike a work-life balance that suits you. If you’d like to talk about how you could phase into retirement and its potential effect on your finances, please get in touch.

Next month, read our blog to find out more about the wellbeing and financial benefits of phasing into retirement.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Investment market update: August 2025

While global government policy – particularly US trade tariffs – continued to influence the value of investments in August 2025, many markets experienced less volatility compared to the start of the year. Read on to discover what factors may have affected the performance of your investments in August 2025.

Hopes of a peace deal between Russia and Ukraine boost markets

On 31 July, Donald Trump, the US president, signed an executive order imposing reciprocal tariffs of up to 41% on certain trading partners. The effect of this influenced market movements at the start of August.

On 1 August, Asian stock market indices, which track the performance of a selected group of stocks, fell. South Korea’s KOSPI was down 3%, while Japan’s Nikkei decreased by 0.4%.

The uncertainty also affected European and US markets. Even though the UK has a trade deal with the US, the FTSE 100 was down 0.5%, while the Dow Jones (-1.1%) and S&P 500 (-1.2%) both fell when Wall Street opened in the US.

There was good news for investors in the UK market on 6 August. The FTSE 100 reached a new closing high after it increased by 0.24%. Among the biggest risers were insurer Hiscox (9.4%), precious metal producer Fresnillo (8.8%), and drinks company Diageo (4.2%).

Ahead of US-Russia talks about the war in Ukraine, European stocks cautiously increased on 11 August. The FTSE 100 was up 0.3%, Germany’s DAX and France’s CAC both edged up almost 0.2%, and Italy’s FTSE MIB increased by 0.45%.

The MSCI’s broad All Country World Index, which tracks stocks from 23 developed and 24 emerging markets, hit an all-time high on 13 August. One of the driving factors was the hope that the US will cut its base interest rate in September.

Further speculation that Russia and Ukraine would strike a peace deal fuelled European stock markets on 19 August. Europe’s Stoxx 600 index increased by 0.6%.

In the first half of 2025, European defence companies saw stocks increase due to rising tensions. With investors hoping for de-escalation, defence stocks, including BAE Systems (-3.6%), Rheinmetall (-4.2%), and Thales (-3.5%), fell.

Despite official data showing inflation was higher than expected in the UK, the FTSE 100 hit another record high on 20 August following a jump of 0.67%.

UK

Inflation in the UK continued to rise in the 12 months to July 2025. Official data shows it was 3.8% and the highest annual reading since early 2024.

Despite persistent high inflation, the Bank of England opted to cut the base interest rate by a quarter of a percentage point to 4%. However, the central bank noted that inflation could slow the pace of further cuts.

Overall business activity is improving, according to a Purchasing Managers’ Index (PMI), which provides insight into economic conditions.

S&P Global’s August PMI recorded the strongest rise in UK business activity in the year to date, with a reading of 53 (a figure above 50 indicates growth) compared to 51.5 in July.

However, PMI data wasn’t as positive for the construction sector. In July, the reading was 44.3, suggesting contraction at the fastest pace in five years. Builders reported a decline in housing projects, which could suggest the government is struggling to hit housebuilding targets.

A report from the British Chambers of Commerce demonstrates the effects of trade tariffs. Goods exported to the US slumped by 13.5% in the second quarter of 2025. The figure is the lowest level in three years, when the Covid-19 pandemic severely disrupted trade.

There was some good news for investors from British fossil fuel giant BP.

BP revealed the largest oil and gas discovery in 25 years off the coast of Brazil. The news was followed by a statement from the company, which said, subject to board approval, it would raise quarterly dividends by at least 4%.

Europe

Eurozone inflation remained stable at 2%, though it varied significantly across the bloc from Cyprus at 0.1% to Romania at 6.6%.

PMI figures from Hamburg Commercial Bank paint an optimistic picture for the EU economy.

As the largest economies in the EU, the performance of companies in Germany and France is important, and both strengthened in August. Germany’s PMI improved for the third consecutive month with a reading of 50.9. While France is just below the 50 mark, which indicates growth, with a reading of 49.8, it’s the highest figure so far in 2025.

Across the eurozone, PMI data shows the manufacturing sector increased production at the fastest pace in more than three years. The reading suggests businesses may be feeling more optimistic as uncertainty around trade tariffs settles.

US

Economists predicted that US inflation would increase, but it remained stable at 2.7% in the 12 months to July.

Weakening demand for US exports due to tariffs has been linked to manufacturing slowing and the trade deficit narrowing.

A PMI conducted by the Institute of Supply Management shows new orders fell in July. Some companies blamed the disruption and confusion caused by changing trade policy.

In addition, the US trade deficit narrowed as companies rushed to import goods into the US before tariffs were applied. The gap between exports and imports was $60.2 billion (£44.5 billion) in June 2025 after a decline of $11.5 billion (£8.5 billion) when compared to May 2025.

There was some good news in the form of PMI data. According to S&P Global, US business activity hit an eight-month high.

US company OpenAI, the group behind ChatGPT, is in talks about a share sale that would value the company at $500 billion (£370 billion). The company isn’t listed on the stock market, and the talks are focusing on a potential sale for current and former employees, who could potentially make large returns by selling the shares on the secondary market.

Asia

China’s exports increased by 7.2% year-on-year in July 2025. The figure was higher than expected and is due to manufacturers taking advantage of a trade war truce between China and the US.

However, while exports increased in July, the ongoing trade war is harming China’s economy. Chinese industrial output increased by 5.7% in July, the slowest rate since November 2024 and below the 6% expected.

The largest automaker in the world, Japanese company Toyota, warned it would take a $9.5 billion (£7 billion) hit from Trump’s tariffs. As a result, it has cut its operating profits for the current financial year from £19.2 billion to £16 billion.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

How pension and Inheritance Tax policy changes could affect your legacy

From April 2027, pensions are expected to fall within your estate and could be liable for Inheritance Tax (IHT). That date might seem far away, but the policy change has the potential to significantly affect your estate plan, so thinking about it now could be useful.

While the policy change is still in the initial stage, the government has signalled that it intends to move forward with the plans.

Under current rules, your pension usually falls outside of your estate when calculating a potential IHT bill. As a result, pensions are often used in tax-efficient strategies to pass on wealth to loved ones.

The inclusion of pensions may mean some estates might need to consider IHT for the first time, or that estate plans need to be updated.

In 2025/26, the nil-rate band is £325,000. If the total value of all your assets, including your pension from April 2027, exceeds this threshold, your estate may be liable for IHT.

The good news is that there are often steps you can take to reduce an IHT bill, which an estate plan could help you identify.

Most pensions are set to be liable for Inheritance Tax, but there are some exceptions

The current proposals suggest most pensions are set to fall within the IHT net from April 2027, including defined contribution pensions, defined benefit pots, workplace pensions, personal pensions, and self-invested personal pensions.

However, there are some exceptions, including pensions that provide an income during your retirement years and certain types of annuities.

In addition, if your pension has a death in service benefit, which may provide your spouse, civil partner, or dependent children with a lump sum or regular income if you pass away, this is expected to be outside of your estate for IHT purposes.

Under current rules, beneficiaries don’t usually pay IHT on inherited pensions, but they may pay Income Tax in some circumstances. Assuming this doesn’t change, it could mean inherited pensions are subject to double taxation as they’ll be liable for both IHT and Income Tax.

The changes could significantly reduce how much you leave behind for loved ones, and could mean that passing on wealth through a pension no longer makes sense from a tax perspective.

3 ways you could pass on wealth and reduce Inheritance Tax

If you’d previously planned to use other assets to fund your retirement so you could pass on your pension tax-efficiently, your wider financial plan may need to change as a result of the incoming policy.

For example, you might choose to deplete your pension during your lifetime and pass on different assets to loved ones now or in the future. Here are three alternative options you might want to consider.

1. Gift assets to loved ones during your lifetime

One option is to pass on assets now. This could provide support for your loved ones when they need it most, such as when they’re buying their first home or are paying a child’s school fees.

However, there are two key things to be aware of before you start gifting assets.

First, review your financial plan to ensure you’ll still be financially secure in the long term after gifting assets.

Second, not all gifts are immediately outside of your estate for IHT purposes. Some may be considered part of your estate for up to seven years after they were gifted; these are known as “potentially exempt transfers”.

Gifts that are immediately considered outside of your estate include:

Up to £3,000 each tax year
Small gifts of up to £250 per person each tax year, so long as you have not used another allowance on the same person
A wedding gift of up to £1,000, rising to £2,500 for grandchildren or great-grandchildren and £5,000 for children
Regular payments to another person that are from your regular monthly income. For example, you may pay into a savings account for a child or cover the rent of an elderly relative.

So, you might want to make gifting part of your financial plan to make the most of gifts that are immediately exempt from IHT.

2. Place assets in a trust

A trust is a legal arrangement where assets are held on behalf of beneficiaries. For IHT purposes, you may use a trust to remove some assets from your estate. In some cases, you might still retain control or benefit from the assets.

There are several different types of trust, and it’s important to ensure yours is set up correctly, as it may not be possible to retrieve assets once they have been placed in a trust. Seeking professional legal and financial advice could help you assess if a trust is the right option for you before you proceed.

3. Take out life insurance to cover an Inheritance Tax bill

A life insurance policy won’t reduce the amount of IHT your estate is liable for, but it can provide your loved ones with a way to pay the bill.

You’ll need to pay regular premiums to maintain the cover. When you pass away, your nominated beneficiary will receive a lump sum, which they can then use to pay the IHT due. It could reduce stress for your loved one at a difficult time and help ensure your estate is passed on intact.

It’s important that the life insurance is written in trust. Otherwise, the payout could be considered part of your estate and lead to a larger IHT bill.

Get in touch to talk about your estate plan

Whether you’re starting from scratch or have an existing estate plan that you’d like to review, we can help you assess what the upcoming changes mean for you and the legacy you want to leave behind. We can work with you on an ongoing basis to ensure your estate and wider financial plan continues to reflect current policy and your needs. Please get in touch to talk to us.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate Inheritance Tax planning or trusts.

5 challenges a financial midlife MOT could help you overcome

Your midlife can be an exciting time; you may have ticked off some goals or bucket list items and are looking forward to what the future holds. Yet, it might also present some new challenges. Arranging a financial midlife MOT could help you overcome obstacles and feel confident as you prepare for the next chapter.

While you might have a better understanding of what you want to get out of life than when you were younger, finances can often become more complex, making it difficult to understand what’s possible. A financial midlife MOT gives you a chance to examine your finances now and calculate if you’re on track to reach your aspirations.

Here are five common challenges a financial MOT could help you navigate.

1. Merging your finances with a partner

As you start to consider retirement and your future, you may opt to merge finances with your partner if you don’t already.

Bringing together your finances can be challenging at any time, but particularly when you’re older, as you may both already hold assets, such as pensions or property. Working with a financial planner could help you take stock of your assets and start to understand how they might form part of your financial plan as a couple.

As well as juggling two sets of assets, you might have different views on financial priorities and long-term goals.

As your financial plan places your aspirations at the centre, a midlife MOT could help you clarify your priorities and balance them with your partner’s.

2. Planning for your retirement

66% of people aged between 45 and 49 feel unprepared for retirement, according to research from LV published in June 2025.

Retirement might feel years away, but it’s a milestone that benefits from early preparation. The decisions you make now could affect your income in your later years, so weighing up your options is essential.

A financial midlife MOT can include reviewing your pensions and other assets you intend to use in retirement to calculate if you have “enough” to live the retirement lifestyle you’re looking forward to.

You could find you’re already on track and enjoy peace of mind as a result. If you discover there’s a potential shortfall, knowing this sooner puts you in a stronger position to bridge the gap, and a financial plan highlights the steps you might take.

3. Balancing care responsibilities

While you might no longer have young children to care for, you could find that you still have care responsibilities during your midlife.

In fact, according to December 2024 research from Legal & General, 1 in 6 middle-aged people support other adults financially, such as grown-up children or elderly parents.

If this isn’t something you’ve considered as part of your financial plan, it could make it harder to budget now and may affect your financial security in the future.

It’s not just your finances that care duties may affect. 1 in 7 midlifers said they provide unpaid care, with hours equivalent to a part-time job. Around half said they feel overwhelmed by their weekly commitments. This can take a toll on your overall wellbeing.

A financial plan that’s focused on what’s important to you could help you balance new responsibilities with your personal goals. For example, you might pay for a carer a few times a week so you’re still able to attend social clubs that you enjoy.

4. Improving your financial resilience

While you might have ticked off some financial commitments, such as paying your mortgage or children’s school fees, it’s still important to ensure you could withstand a financial shock. Your income stopping or facing an unexpected bill often has the potential to derail your plans.

A midlife review gives you the opportunity to evaluate your financial security and assess how you’d cope with an unexpected event.

You might check if you hold enough cash in your emergency fund or review your financial protection to see if you have an adequate safety net. While you hope never to need it, a financial safety net can provide reassurance and protection if the unexpected happens.

5. Setting out your legacy

It’s easy to think that you don’t need to consider how you’ll pass on assets to your loved ones yet. However, it’s impossible to know what’s around the corner, and there may be benefits to passing on wealth during your lifetime rather than waiting to leave an inheritance.

Putting together an estate plan can be difficult. Not only are you bringing together all your assets and considering how circumstances may change in the coming decades, it’s also an emotional topic. So, if it’s something you’ve been putting off, you’re not alone.

It may be daunting at first, but your estate plan allows you to take control of your legacy. As your financial planner, we can help you create an estate plan that gives you long-term security while supporting the people who are important to you.

Contact us to arrange a financial midlife MOT

Get the most out of your life by feeling confident about your finances. Please contact us to talk to one of our team members and arrange a financial review.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

Note that life insurance and financial protection plans typically have no cash in value at any time, and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

The Financial Conduct Authority does not regulate estate planning.

3 ways behavioural bias could affect your approach to estate planning

Financial biases are often linked to investing. However, subconscious tendencies can affect many aspects of your finances, including your estate plan.

An estate plan sets out how your assets will be managed during your lifetime and distributed after your death. It might include writing a will or creating a trust to provide for young children.

As estate planning can be emotional, it’s not surprising that behavioural biases could affect how you approach the task. So, here are three ways biases might affect your estate plan.

1. Putting off your estate plan due to emotions or overconfidence

Trying to avoid confronting difficult emotions means some people put off estate planning altogether.

A February 2025 survey carried out by JMW Solicitors found that 77% of people believe having a will is important. Yet, 58% don’t have a valid will, and avoiding the sometimes difficult conversations that might form part of estate planning could be a reason why.

Overconfidence may also be a reason for not creating an estate plan. For example, you might believe you’re “too young” to worry about writing a will or that you’re healthy now, so you can leave the task for the future. However, life is unpredictable and it’s impossible to know what’s around the corner.

Putting off estate planning because it’s difficult or you assume you don’t need one yet could leave your family in a vulnerable position should the unexpected happen.

While estate planning can be daunting at first, view it as a step that allows you to take control of your legacy. Once the task is complete, you may find it reassuring to know you’ve set out your wishes.

2. Under or overvaluing assets could have implications for your estate plan

A common financial bias that affects investors is tying the value of certain assets to a particular piece of information. For example, you might view shares as being worth £100 because that’s what you initially paid for them, even if the value has changed.

Under or overvaluing your assets could have implications for your estate plan.

You might want to split your estate evenly between your children while giving them specific assets. However, if you don’t have accurate information when doing this, they could end up with very different proportions of your wealth, which might lead to disputes.

Alternatively, if you undervalue assets, you might not realise your estate could be subject to Inheritance Tax (IHT). For instance, if you’ve “anchored” the value of your home to the price you paid for it 20 years ago, your estate could unexpectedly be liable for IHT due to rising property prices.

Regular financial reviews with your financial planner can help you track the value of your assets, and how they could rise or fall in the future.

3. Loss aversion could mean you are reluctant to pass on assets

Loss aversion suggests that you feel the pain of a loss twice as strongly as the pleasure of an equivalent gain. This bias can lead to people avoiding taking action, even when it would make sense.

As part of your financial plan, you might want to gift assets to your beneficiaries now instead of leaving them an inheritance. It’s an option that could provide much-needed financial support to your loved ones, such as covering university fees or helping them renovate their home.

Gifting during your lifetime can be rewarding, but loss aversion might also mean you’re reluctant to part with assets.

A reason for this is that you might worry about an unexpected event creating a financial shortfall in the future. So, you choose to hold on to the assets.

A financial plan could help you see the effect of gifting during your lifetime, including whether you could still overcome a financial shock. Discussing your gifting plans could give you the confidence to pass on assets and ease your worries.

Contact us to talk about your estate plan

Working with a professional who understands your circumstances and goals can make estate planning easier. We’ll be on hand to offer support and guidance from the outset.

Please contact us to arrange a meeting to discuss your estate plan.

The Financial Conduct Authority does not regulate estate planning, will writing, or trusts.

Taken out a new mortgage? Don’t forget to review your financial protection

Taking out a new mortgage deal could represent a shift in your financial commitments. So, reviewing whether your financial protection is still appropriate could ensure you have a vital safety net should you face a shock.

Read on to learn how financial protection can provide security in unexpected situations, and what to consider when taking out new cover.

Financial protection paid out a record £8 billion in 2024

Financial protection could provide a much-needed cash injection when you or your loved one experiences a financial shock.

Indeed, in 2024, insurers paid out a record £8 billion in financial protection claims, according to data released in July 2025 by the Association of British Insurers (ABI).

There are several types of financial protection that you might want to weigh up as a homeowner. The three main options are:

1. Income protection

If you’re unable to work due to an illness or accident, income protection would pay you a regular income until you return to work, retire, or the term ends. This income is usually a portion of your salary, such as 60%.

Income protection could help you cover financial commitments, including mortgage repayments, if your regular income stops. The ABI figures show the average amount paid through income protection was £25,133.

2. Critical illness cover

If you’re diagnosed with a covered critical illness, this form of financial protection would pay you a lump sum. According to the ABI statistics, the average amount claimed was £68,735.

You can use the lump sum however you wish. So, you might use it to cover your regular outgoings while you take time off work, adapt your home if necessary, or pay off your mortgage.

3. Life insurance

Life insurance would pay out a lump sum to your beneficiaries if you passed away during the term. It could provide your loved ones with financial security while they are grieving.

You can choose the level of cover to suit you and your family. For example, you might opt for an amount that would pay off your mortgage to reduce your family’s financial commitments.

The ABI figures show 96.5% of life insurance claims were upheld in 2024, and the average claim was for £79,703.

Your circumstances will affect the type of financial protection that’s right for you

If you’ve taken out a new mortgage, review your current financial commitments and consider when and how financial protection could benefit you.

For example, if you’re a homeowner with limited savings, income protection could be a valuable option.

According to a May 2025 article in Cover Magazine, 14% of mortgage holders would immediately struggle to pay their mortgage after income loss. As a result, they could be at risk of losing their home if they haven’t taken other steps to create an income stream.

Alternatively, if you have a family that relies on your income, life insurance may be a priority to protect your loved ones.

In July 2025, a Which? article noted that more than half of people in the UK don’t have life insurance in place, potentially leaving households at risk of financial hardship if they were to die unexpectedly.

Depending on your needs, you might find that you’d benefit from taking out more than one type of financial protection.

3 other factors that might affect which financial protection is right for you

Before you take out new financial protection, check these three areas. They could affect the type and level of cover that’s right for you.

1. Review existing cover

Take some time to review what cover you already have in place.

Even if you haven’t taken out financial protection directly, you could still have some cover. For instance, if your employer provides a death in service benefit, you might not need to take out life insurance as well.

2. Check your employer’s sick pay policy

In 2025/26, Statutory Sick Pay is just £118.75 a week and is paid for up to 28 weeks. As a result, most families would struggle if they relied on this alone, making income protection an attractive option.

However, many workplaces offer an enhanced sick pay policy, so it’s worth reading your contract or employee handbook. Check what portion of your salary you’d receive if you were unable to work and how long it would be paid for.

You could select income protection to complement your sick pay. For instance, if you’d receive a salary for six months, you could select income protection with a six-month deferment to reduce premiums.

3. Assess your other assets

Look at your wider finances when assessing financial protection – what assets could you use if you faced a financial shock?

If you have a substantial emergency fund, you may reduce the level of cover. However, if your assets are earmarked for other purposes, like retirement, you might want to consider the effect depleting them now could have on your future financial security.

We can help you create a reliable financial safety net

As part of your long-term plan, we can work with you to create a safety net you and your loved ones can rely on, including taking out appropriate financial protection. Please contact us to arrange a meeting.

If you have any mortgage related queries please get in touch

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Note that life insurance and financial protection plans typically have no cash in value at any time, and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

Explained: How remortgaging works and why it’s important

Remortgaging is a task most homeowners will do at some point. Yet, it can seem complex or something that isn’t that important. Read on to learn how remortgaging works and why it could save you money.

When taking out a mortgage, you’ll choose the term length, the length over which you repay the loan. First-time buyers traditionally opt for a 25-year term, but it’s possible to repay a mortgage over 40 years in some cases.

However, the interest rate you’re offered won’t usually last for the full term of the mortgage. Instead, the deal will expire after a defined period, most commonly two, three, or five years.

When your mortgage deal expires, you can remortgage without paying an early repayment charge (ERC) either with your current lender or a new one. One of the main reasons homeowners remortgage is to save money.

Remortgaging could save you thousands of pounds over the full mortgage term

Typically, when your mortgage deal expires, you’ll move on to your lender’s standard variable rate (SVR). If you continued to make repayments, you’d still pay off the mortgage at the end of the term.

However, the SVR isn’t normally competitive, so it could mean you’re paying far more in interest.

As you often borrow large sums over an extended period through a mortgage, even a small difference in the interest rate could mean you save thousands of pounds.

Imagine you’ve borrowed £250,000 through a repayment mortgage and you have 20 years remaining on the term. If your lender’s SVR is 6%:

Your monthly repayment would be £1,791
Over the full mortgage term, you’d pay almost £180,000 in interest.

Now, if you search for a new mortgage deal when your previous one expires and secure an interest rate of 4%:

Your monthly repayment would fall to £1,514
Over the full mortgage term, you’d pay around £113,500 in interest.

So, in this scenario, taking the time to remortgage would save you more than £65,000.

While your interest rate is likely to change several more times throughout the remaining 20-year mortgage term, the figures illustrate the power of remortgaging. Paying less interest could help you become mortgage-free sooner or allow you to pursue other goals.

3 more practical reasons to remortgage

Saving money isn’t the only reason to remortgage. Here are three more reasons to check when your current deal expires and prepare to find a new deal.

1. You may choose to fix the interest rate

As the name suggests, the interest rate if you’re paying the SVR is variable. This means it could rise or fall, which would affect your repayments.

When you remortgage, you might also want to consider whether a fixed-rate mortgage is the right option for you. This would mean the interest rate you pay is fixed for the duration of the mortgage deal, which can be useful for budgeting.

2. You can change your mortgage term

Remortgaging is an excellent opportunity to assess if the mortgage term is still right for you.

If you want, you can shorten the term, which would mean you repay the debt sooner. Alternatively, if you want to reduce your outgoings, you might extend the term. Keep in mind that repaying over a longer term usually means paying more interest overall.

3. You might be able to release equity from your home

As you make mortgage repayments or the value of your property rises, you build up equity in your home. Depending on your circumstances, you might be able to release some of this equity to fund a renovation project, consolidate debt, or cover other expenses.

While this can be a tempting option, this increases the amount you borrow, meaning higher repayments and more interest over time.

You’ll usually need to complete a mortgage application to access a new deal

The process for remortgaging is similar to taking out a mortgage for the first time.

Comparing lenders can help you secure a competitive interest rate. As a mortgage adviser, we can help you assess the options and which lenders are likely to approve your application.

Usually, you’ll need to apply for a mortgage, including proving that the repayments are affordable. Again, we can lend support here when you’re completing the paperwork to ensure the process is as smooth as possible.

If you have any mortgage related queries please get in touch

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Guide: Revealed: The value of financial planning

Financial planning can add real value to your life, helping you achieve your goals and enjoy the lifestyle you want.

When you think about financial planning, you might initially focus on the financial element.

Perhaps you’re interested in how planning can help you reduce your tax bill, invest to get the most out of your savings, or make sure you’re on track for retirement?

While financial planning can certainly help in these areas, it actually goes far beyond that. It’s all about helping you live the life you want, feel more confident about the future, and reach your goals.

When clients first approach a financial professional, it’s often because they need support with a specific question or concern, such as:

Can I afford to invest more of my wealth?
How much do I need to save to enjoy my lifestyle in retirement?
What can I do to reduce Inheritance Tax for my loved ones after I’m gone?

While a planner can help you answer questions like those above, the process of financial planning is even more all-encompassing, designed to deliver greater value.

In this guide, you can find out why.

Download your copy here: “Revealed: The value of financial planning” to discover how financial planning could help you achieve your long-term aspirations.

If you have any questions or would like to discuss how we could work together to build a financial plan, please contact us.

Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only.